A "right-to-audit" clause:
A) provides rights to the vendor to audit the company's books at any time.
B) gives an external auditor the right to audit the company's books.
C) is considered in civil court as an invasion of privacy.
D) alerts vendors that the company reserves the right to audit the vendor's books at any time.

Question

Quizplus · Accepted Answer

A "right-to-audit" clause typically alerts vendors that the company has the right to audit the vendor's books at any time. This clause is included in contracts to ensure that the vendor is meeting its contractual obligations and using the company's funds appropriately. It does not provide rights to the vendor to audit the company's books or give an external auditor the right to audit the company's books. While some may argue that it is an invasion of privacy, it is generally considered an acceptable business practice.

A "Right-To-Audit" Clause